The following letter from David E. Lechner, vice president for business & finance for the University of Nebraska, outlines some of the health insurance premium and coverage changes for 2004.
October 10, 2003
Dear Friends and Colleagues:
In mid-November, you will receive enrollment materials for your 2004 NUFlex benefits plan, which will include some changes in health insurance premiums and coverage taking effect January 1, 2004.
Our goal is to offer a competitive and comprehensive health insurance program while keeping rates at a reasonable level. As you know, our program is a self-funded plan. This means that an employer (the University) and employees share in the cost of the plan. In our plan, employees pay approximately 20% of the total cost of health insurance, with the University paying the remaining 80%. The rates employees and the University pay are based on employee health claims paid in previous years and these claims have risen dramatically, similar to what has happened on a national basis.
Details of the 2004 plan will be shared with you via e-mail and in campus publications on October 16, to allow you time to make comparisons with other plans you may be considering. Changes you should expect to see for 2004 include:
- Rates for each coverage category will continue to be determined based on actual claims experience of the people covered. This means increases in the premiums reflect increases in insurance claims made by individuals covered under the University’s health insurance.
- Half of our employees will see no increase or an increase of under two dollars, in monthly health insurance costs.
- The coverage category covering both employee + spouse and employee + child(ren) currently has a fixed rate for both categories. These groups will now be split into separate rates to reflect that single employees with children tend to have lower medical expenses than employees with a covered spouse. Within these coverage categories, employee/spouse (low and basic options) and employee child(ren) (low option) will see increases of $15-$33 per month.
- Employees with family coverage who elect the low or basic option will see increases in premiums of $35-55 per month, which is a more accurate reflection of health insurance usage.
- All covered employees will see modest increases in deductibles for medical and dental care, medical stop-loss limits, and co-pays for some prescription drugs.
As health care costs continue to trend upward, our goal is to keep benefits competitive while providing a variety of options.
After you review the materials on October 16th, if you have questions please contact your campus benefits office listed below.
UNMC: 559-4340, benefits@unmc.edu
UNL:472-2600, benefits@unlnotes.unl.edu
UNO: 554-2321, benefits@unomaha.edu
UNK: 865-8522, benefitsunk@unk.edu
UNCA: 472-7162, benefits@nebraska.edu
Sincerely,
David E. Lechner
Vice President for Business & Finance